Tech Bytes: Three IBM Commerce Insights on Retail IT
I recently spoke with Deepak Advani, new general manager of the IBM Commerce business unit, to get some insights on the current state of retail IT and what kinds of offerings for retail IBM Commerce is focusing on. Following are three insights from our conversation.
Hybrid Cloud is the Clear Choice
IBM Commerce just announced a major push into the realm of hybrid cloud solutions and services. Advani made it clear he sees hybrid cloud computing, which links public cloud-based applications to solutions running on private, on-premises cloud platforms, as the infrastructure that will support the evolution of retail.
“Hybrid cloud is where the game will be played,” said Advani. “A lot of mobile apps consumers use every day go through the cloud to access transactional systems.”
Advani said customer-facing “systems of engagement” typically run on public clouds, where they integrate and interact with back-end “systems of record” that contain sensitive data and typically run on private, on-premises clouds.
“We are having more cloud-based apps delivered on mobile devices,” said Advani. “They must transact with systems in the data center.”
Keeping more sensitive workloads stored on-premises helps hybrid cloud networks maximize security while still providing the flexibility and convenience of public clouds for less sensitive workloads. Advani emphasized that IBM ensures stringent security for every part of the hybrid cloud network, public and private.
Apple Partnership off to Shiny Start
Advani also touched upon IBM’s MobileFirst partnership with Apple that started releasing jointly developed iOS business apps and supporting services in December 2014.
“The beauty of the partnership is it allows us to develop industry-focused iOS apps with the elegance of the iOS experience combined with behind-the-scenes, heavy duty, enterprise-grade analytics,” said Advani.
For retailers, IBM is using the partnership to help develop apps that link Web-based e-commerce capabilities to brick-and-mortar stores, enabling omnichannel activities like picking up online purchases at a local store or being recognized by associates upon entering a store for immediate personalized service.
“It’s a real advantage,” said Advani. “If a customer wants a specific pair of shoes, they can immediately know if it’s in stock or available at a nearby store. The app can also inform customers if there are any similar items in stock.”
Advani said this capability lets stores make targeted recommendations to customers based on products they are searching for, much like what Amazon.com offers online shoppers.
It’s Elementary, Watson
Advani concluded his commentary with some discussion on how IBM is positioning its Watson cognitive technology platform in the retail space.
“Watson goes beyond artificial intelligence,” stated Advani. “The system can understand a particular industry or domain and then learn and get smarter over time.”
In the case of retail, Advani said Watson can sift through the dizzying array of SKUs a human merchandiser has to track to find the “needle in the haystack” within SKU data, such as what specific products need to be available at what specific times to maximize overall sales.
He said Watson analytics can also enable retailers to have truly personalized conversations with customers at every step along their path to purchase. In addition, he sees Watson as a crucial tool for meeting consumer needs during peak demand periods like Cyber Monday.
“You can see the customer better and treat the retail store as an extension of the distribution center,” said Advani. “You can factor in the cost of labor, distribution and carrying extra inventory and predict demand to reduce markdowns.”